Age 59 1/2 or 5 years after first contributions are made, whichever is longer.
The alternative to any Roth IRA or Roth 401(k) is cash value whole life insurance policies. Unlimited contributions, guaranteed growth, 100% principal protection and guaranteed tax free death benefit.
Just because your employer offers a 401(k) program does not mean you need to participate. If you don't get a big enough match to off-set the liquidity and cash flow, I wouldn't do it.
That is a great question! Roth IRA's are very withdrawal friendly, compared to other retirement plans. Simply put, your contributions can be withdrawn at any time without being taxed, as you paid the tax on those contributions before making them.Withdrawing your contributions is no different than taking it out of your savings account. It's not income to take back your deposit.
Your earnings, however, can be taxed under certain circumstances. To avoid them, your plan must be open for at least five years, and you must be at least 59 1/2 years of age. But...even then there are reasons that you can pull earnings without being taxed - first time home buying, medical emergency payments, and qualified education expenses would not be taxed. Like I said, this is a very withdrawal friendly investment vehicle.
So to recap: contributions can be taken tax free at any time. Earnings after 5 years, and if you are over 59 1/2, unless it's for a qualified expense. Remember that the purpose of your Roth is to generate earnings, and any withdrawal of funds from it early will have a very serious impact on that growth, so should be avoided if possible. This was a great question, thanks for asking it!
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The alternative to any Roth IRA or Roth 401(k) is cash value whole life insurance policies. Unlimited contributions, guaranteed growth, 100% principal protection and guaranteed tax free death benefit.
Just because your employer offers a 401(k) program does not mean you need to participate. If you don't get a big enough match to off-set the liquidity and cash flow, I wouldn't do it.
Your earnings, however, can be taxed under certain circumstances. To avoid them, your plan must be open for at least five years, and you must be at least 59 1/2 years of age. But...even then there are reasons that you can pull earnings without being taxed - first time home buying, medical emergency payments, and qualified education expenses would not be taxed. Like I said, this is a very withdrawal friendly investment vehicle.
So to recap: contributions can be taken tax free at any time. Earnings after 5 years, and if you are over 59 1/2, unless it's for a qualified expense. Remember that the purpose of your Roth is to generate earnings, and any withdrawal of funds from it early will have a very serious impact on that growth, so should be avoided if possible. This was a great question, thanks for asking it!